Sweetbay to close 5 stores in region

Sweetbay Supermarket intends to shutter a handful of area supermarkets in the next month -- and nearly one-third statewide -- as part of a corporate restructuring.

The local stores are at 501 N. Beneva Road, in Sarasota; 5201 33rd St. E., in Bradenton; 8750 State Road 70 E., in Manatee County; 3410 U.S. 301, in Ellenton; and 10175 Tamiami Trail, in Punta Gorda.

The local closings will cost 250 to 300 jobs, the company said Thursday.

"While these decisions are difficult, especially given the impact on our associates, customers and communities, these actions will continue to enhance the performance of our overall store portfolio and further enable us to deliver profitable growth and accelerate shareholder value," Sweetbay said in a statement.

When completed, the supermarket chain will still operate 10 stores in Sarasota, Manatee and Charlotte counties, including on 14th Street in Bradenton, and in Sarasota's Midtown Plaza.

Sweetbay, which under Belgian parent company Delhaize Group and a Tampa-based American affiliate revamped from former Kash n' Karry stores beginning in 2004, has suffered from image problems and an inability to carve out a niche among Florida shoppers.

While Kash n' Karry appealed to budget-conscious consumers, Sweetbay's more upscale approach has alienated some of its customer base with higher prices on wine and other items.

Most notably, Sweetbay has failed to gain traction against firmly imbedded competitors like Publix Super Markets Inc. and newcomers like Whole Foods Market and Trader Joe's.

The chain has struggled, as well, against lower-cost competitors like Winn-Dixie, Aldi, Sav-A-Lot and big-box chains like Sam's Club and Costco in Southwest Florida.

"Every chain closes a few here and there, but to close that percentage of their stores in one shot, that is not something you usually see," said Patrick C. Fitzpatrick, a consultant with Atlanta Retail Consulting, of Georgia.

"Management usually has to have their back against the wall to make a decision like that," he added.

In all, Sweetbay announced plans to close 33 Florida stores -- 30 percent of its Sunshine State outlets -- by mid-February. Most are north of Manatee County. Of the 33 closings, 12 stores are in Pinellas and Pasco counties and another six are in Tampa, the company stated.

Roughly 2,000 employees will lose jobs with the closings, the company said.

When the restructuring is complete, Sweetbay will have 72 stores in Florida.

The closings come as Delhaize Group's American revenue slipped in the fourth quarter and earnings estimates are expected to fall considerably for last year as a whole, according to company data.

Revenue in the fourth quarter fell 2.1 percent, the company stated. Perhaps more significantly, however, the company is anticipating a 17.5 percent decline in its 2012 operating profits when it formally reports earnings later this year.

In addition to Sweetbay, Tampa-based Delhaize America operates Food Lion, Dollar Food and Harvey's supermarkets, among others. In all, its 1,500 stores are located in 16 states.